LATEST UPDATED PRMIA 8011 VALID TEST COST: CREDIT AND COUNTERPARTY MANAGER (CCRM) CERTIFICATE EXAM - REAL 8011 EXAMS

Latest Updated PRMIA 8011 Valid Test Cost: Credit and Counterparty Manager (CCRM) Certificate Exam - Real 8011 Exams

Latest Updated PRMIA 8011 Valid Test Cost: Credit and Counterparty Manager (CCRM) Certificate Exam - Real 8011 Exams

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Tags: 8011 Valid Test Cost, Real 8011 Exams, Dump 8011 Check, 8011 Certification Sample Questions, 8011 Reliable Test Preparation

The Credit and Counterparty Manager (CCRM) Certificate Exam (8011) questions have many premium features, so you don't face any hurdles while preparing for 8011 exam and pass it with good grades. It will be an easy-to-use learning material so you can pass the Credit and Counterparty Manager (CCRM) Certificate Exam (8011) test on your first try. We even offer a full refund guarantee (terms and conditions apply) if you couldn't pass the Credit and Counterparty Manager (CCRM) Certificate Exam (8011) exam on the first try with your efforts.

PRMIA 8011 Credit and Counterparty Manager (CCRM) Certificate Exam is a highly respected certification that is valued by employers and recognized globally as a mark of excellence in the field of credit and counterparty risk management. 8011 exam is designed to test an individual's knowledge and understanding of the key principles and practices of credit risk management and counterparty credit risk management, and is open to professionals who meet the eligibility requirements. With its comprehensive syllabus, rigorous testing, and global recognition, the PRMIA 8011 CCRM certification is an essential credential for anyone looking to advance their career in risk management.

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PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q13-Q18):

NEW QUESTION # 13
The systemic manifestation of the liquidity crisis during the current credit crisis took many forms. Which of the following is not one of those forms?

  • A. Drying up of liquidity in the corporate bond markets
  • B. Stress and large withdrawals from the money markets
  • C. Drying up of liquidity in the cash market for treasury bonds
  • D. Drying up of liquidity in the wholesale money markets

Answer: C

Explanation:
The stresses on liquidity that happened as part of the credit crisis beginning 2007-08 led to drying up of trading and liquidity crisis in the corporate bond markets, the auction rate securities markets, the wholesale (interbank lending) markets, the money markets, the markets for structured products, and even the otherwise liquid futures and forwards markets (as there was no liquidity available to fund the financing of futures). The one market that was not affected was the market for treasuries, in fact the flight to quality ensured that this market was very liquid (even though stressed from a pricing perspective as yields plummetted).
Therefore Choice 'a' is the correct answer.


NEW QUESTION # 14
When compared to a high severity low frequency risk, the operational risk capital requirement for a low severity high frequency risk is likely to be:

  • A. Higher
  • B. Unaffected by differences in frequency or severity
  • C. Zero
  • D. Lower

Answer: D

Explanation:
High frequency and low severity risks, for example the risks of fraud losses for a credit card issuer, may have high expected losses, but low unexpected losses. In other words, we can generally expect these losses to stay within a small expected and known range. The capital requirement will be the worst case losses at a given confidence level less expected losses, and in such cases this can be expected to be low.
On the other hand, medium severity medium frequency risks, such as the risks of unexpected legal claims, 'fat- finger' trading errors, will have low expected losses but a high level of unexpected losses. Thus the capital requirement for such risks will be high.
It is also worthwhile mentioning high severity and low frequency risks - for example a rogue trader circumventing all controls and bringing the bank down, or a terrorist strike or natural disaster creating other losses - will probably have zero expected losses & high unexpected losses but only at very high levels of confidence. In other words, operational risk capital is unlikely to provide for such events and these would lie in the part of the tail that is not covered by most levels of confidence when calculating operational risk capital.
Note that risk capital is required for only unexpected losses as expected losses are to be borne by P&L reserves. Therefore the operational risk capital requirements for a low severity high frequency risk is likely to be low when compared to other risks that are lower frequency but higher severity.
Thus Choice 'c' is the correct answer.


NEW QUESTION # 15
Loss from a lawsuit from an employee due to physical harm caused while at work is categorized per Basel II as:

  • A. Unsafe working environment
  • B. Employment practices and workplace safety
  • C. Damage to physical assets
  • D. Execution delivery and process management

Answer: B

Explanation:
Choice 'a' is the correct answer. Refer to the detailed loss event type classification under Basel II (see Annex 9 of the accord). You should know the exact names of all loss event types, and examples of each.


NEW QUESTION # 16
If the returns of an asset display a strong tendency for mean reversion, what is the relationship between annualized volatility calculated based on daily versus weekly volatilities (using the square root of time rule)?

  • A. Weekly volatility will be greater than daily volatility
  • B. Either daily or weekly volatility will be greater, depending upon how the week went
  • C. Daily volatility will be greater than weekly volatility
  • D. Daily and weekly volatilities will be the same

Answer: C

Explanation:
If returns display mean reversion, then clearly daily volatilities will be greater than weekly volatility, both annualized using the square root of time rule. Mean reversion would imply that the deviation from the mean will be lower over a longer time period than a shorter time period, and therefore annualized volatility based on daily volatility will be greater.


NEW QUESTION # 17
Which of the following is true for the actuarial approach to credit risk modeling (CreditRisk+):

  • A. Default correlations between obligors are accounted for using a multivariate normal model
  • B. The approach considers only default risk, and ignores the risk to portfolio value from credit downgrades
  • C. The approach is based upon historical rating transition matrices
  • D. The number of defaults is modeled using a binomial distribution where the number of defaults are considered discrete events

Answer: B

Explanation:
The actuarial model considers defaults to follow a Poisson distribution with a given mean per period, and these are binary in nature, ie a default happens or it does not happen. The model does not consider the loss of value from credit downgrades, and focuses only on defaults. The model also does not consider default correlations between obligors. Therefore Choice 'c' is the correct answer.
The other choices are not true statements that would apply to the actuarial approach.


NEW QUESTION # 18
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